Andersons (ANDE) risk factors, FY2025 10-K

Risks Related to our Business and Industry

1. 01Our business is affected by the supply and demand of commodities and is sensitive to factors outside of our control. Adverse price movements could negatively affect our profitability and results of operations63% rewritten
2. 02The Andersons, Inc. | 2025 Form 10-K | 5100% rewritten
3. 03Some of our business segments operate in highly regulated industries. Changes in government regulations or trade association policies could adversely affect our results of operations62% rewritten
4. 04In addition, changes to environmental regulations may require us to modify our existing plant and processing facilities which could significantly increase the cost of those operationsNew
5. 05The Company is subject to uncertainty regarding eligibility and monetization of Section 45Z Tax CreditsNew
6. 06We are required to carry significant amounts of inventory across all our businesses. If a substantial portion of our inventory becomes damaged or obsolete, its value would decrease, and have an adverse impact on the Company's financial results
7. 07Our indebtedness could negatively affect our financial condition, decrease our liquidity and impair our ability to operate the business
8. 08We face significant competition and pricing pressure from other companies in our industries. If we are unable to compete effectively with these companies, our sales and profit margins would decrease, and our earnings and cash flows would be adversely affected
9. 09Our Agribusiness and Renewables businesses use derivative contracts to reduce the impact of volatility in the commodity markets. Non-performance by the counterparties to those contracts could adversely affect our future results of operations and financial position21% rewritten
10. 10We face exposure to country risk in countries that face financial, political, and economic unrest through unsecured credit, inventory, forward contract risk or payment origination that could adversely affect our future results of operations, financial position, and cash flows
11. 11Our business involves considerable safety risks. Significant unexpected costs and liabilities would have an adverse effect on our profitability and overall financial position
12. 12We own several aging assets that require regular assessment and continual investments in maintenance capital. If we experience catastrophic damage to our facilities due to structural integrity, this could result in disruptions to operations, potential safety incidents and losses not covered by insurance
13. 13Adverse weather conditions, including as a result of climate change, may adversely affect the availability, quality and price of agricultural commodities and agricultural commodity products, as well as our operations and operating results51% rewritten
14. 14The Company faces risks related to international conflicts, acts of terrorism and wars that may adversely impact the Company's financial condition or results of operations
15. 15We rely on a limited number of suppliers for certain of our raw materials and other products and the loss of one or several of these suppliers could increase our costs and have a material adverse effect on any one of our business segments
16. 16We are subject to global and regional economic downturns and related risks including health epidemics, pandemics and similar outbreaks
17. 17The Company may not be able to effectively integrate businesses it acquires
18. 18If our goodwill, amortizable intangible assets and long-lived assets become impaired, then we could be required to record a significant charge to earnings
19. 19Our business depends on our ability to successfully manage productivity improvements and ongoing organizational change, including our ability to attract and retain talented employees
20. 20Compliance with evolving regulations regarding disclosure of emissions and metrics and/or climate change may impact our reputation, increase our operating costs, and reduce the value of our assets and products
21. 21The Company faces transition risks and physical risks related to climate change and electrification
22. 22The Company's information technology systems may impose limitations or failures which may affect the Company's ability to conduct its business73% rewritten
23. 23The Andersons, Inc. | 2025 Form 10-K | 11New
24. 24We are at risk of cyber-incidents or other security breaches that could undermine our ability to operate effectively
25. 25A change in tax laws or regulations of any federal, state or international jurisdiction in which we operate could increase our tax burden and otherwise adversely affect our financial position, results of operations, cash flows and liquidity65% rewritten
26. 26The Andersons, Inc. | 2025 Form 10-K | 12New
27. 27We are subject to various legal and regulatory proceedings, including litigation in the ordinary course of business, and uninsured judgments or a rise in insurance premiums may adversely impact our business, financial condition and results of operations